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Organization
6 Months Ended
Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
1. Organization
Western Refining Logistics, LP ("WNRL" or the "Partnership") is a Delaware limited partnership formed in July 2013 by Western Refining Logistics GP, LLC ("WRGP" or the "General Partner"), our general partner. WRGP is 100% owned by Western Refining, Inc. ("Western") and holds all of the non-economic general partner interests in WNRL.
WNRL is a growth-oriented partnership that was formed to own, operate, develop and acquire logistics and related assets and businesses including terminals, storage tanks, pipelines and other logistics assets related to the terminalling, transportation, storage and distribution of crude oil and refined products. WNRL's assets include approximately 300 miles of pipelines, 8.1 million barrels of active storage capacity, terminal facilities and a fleet of transport units that distribute wholesale petroleum products and transport crude oil.
On October 15, 2014, we acquired all of the outstanding limited liability company interests of Western Refining Wholesale, LLC (“WRW”), which owned substantially all of Western’s wholesale assets in the Southwest U.S. We acquired these interests pursuant to a Contribution, Conveyance and Assumption Agreement, dated September 25, 2014, as amended (the “Contribution Agreement”), by and among us, Western, Western Refining Southwest, Inc., a wholly-owned indirect subsidiary of Western ("WRSW"), and our general partner, in exchange for consideration of $320 million in cash and 1,160,092 additional common units. We refer to this transaction as the "Wholesale Acquisition." We funded the cash payment for the Wholesale Acquisition through $269 million in borrowings under our $300 million Senior Secured Revolving Credit Facility ("Revolving Credit Facility") and $51 million from cash on hand. The issuance of these additional units to Western increased Western's limited partner interest in WNRL to 66.2% at the acquisition date. During the first quarter of 2015, WNRL issued additional units to common unitholders through our equity based compensation program, reducing Western's limited partner interest in WNRL to 66.1%. Public unitholders own the remaining 33.9% limited partner interest. See Note 12, Equity for additional information regarding limited partner interests.
Our operations include two business segments: the logistics segment and the wholesale segment. See Note 4, Segment Information, for further discussion of our business segments. Prior to the Wholesale Acquisition, WNRL generated its revenues principally based on fees charged for logistics services. Following the Wholesale Acquisition, a significant portion of our revenues result from product sales to third-party and affiliate customers.
The financial statements presented in this Quarterly Report on Form 10-Q have been retrospectively adjusted to include the consolidated financial results of the WRW assets prior to October 15, 2014. The balance sheets as of June 30, 2015 and December 31, 2014, presents solely the consolidated financial position of WNRL. We recorded the purchase of WRW's assets at Western's historical book value, which was required for accounting purposes, to treat the purchase as a reorganization of entities under common control.